Developing Strategic Management And Management Skills Commerce Essay

Strategic management can be explained as a skill & research of formulating, implementing and evaluating cross-functional decisions that enables an organization to attain its organizational or corporate goals effectively and effectively. Command and Strategic Management have the most important linkages and it is important to notice that strategy of an organization is developed through its leadership perspective and organizational viewpoint. Command and management will vary techniques as management just comes after orders while market leaders inspire others to get the duty done and generate purchases and instructions for management to check out.

In this paper, Lincoln Electric has been determined for studying quite linkages between control and tactical management. The paper is divided in three main tasks. The first task provides (a) an explanation of the link between strategic management and leadership, (b) an research of the impact of management and authority styles on strategic decisions and (c) an evaluation of how control styles can be designed to different situations. The next job is to (a) review the impact that preferred theories of management and authority have on organizational strategy and (b) make a control strategy that helps organizational way (with the point of view of Apple Inc. ). The final task discusses how to (a) use appropriate methods to review current management requirements, (b) arrange for the development of future situations needing management, (c) plan the development of leadership skills for a specific necessity, and (d) statement on the usefulness of methods used to plan the introduction of leadership skills. In the long run, conclusion was created to summarize the discussion and research.

Task 1

Linkage between proper management and leadership

It is important to notice that leadership takes on the most dominant role in assisting the organization to attain its goals and targets. It is because leadership plays the key role in devising a powerful and successful strategy that allows an organization to reach its commercial goals and goals.

Leaders of the organization develop organizational idea or operating viewpoint of an organization that how it works. Organizational philosophy builds up its culture and composition. It really is interesting to notice that the perspective and mission are essential for devising a highly effective strategy which vision and mission of firm is highly reliant on organization's culture and structure. Thus, eye-sight and mission (developed finally by authority) gives go up to the strategy of an organization to attain its organizational goals and aims i. e. to get a ecological competitive advantage available on the market in accordance with competition or even to anticipate development through mergers or acquisitions. Therefore, there can be an important linkage between strategic management and management of an organization as leadership in the end sets the strategic direction of an organization through the above mentioned process that is reviewed above. The exact same linkage of tactical management and management is present regarding Lincoln electric and it will be discussed in job 2.

Some of the key linkages between strategic management and command are:

Leadership can be involved about the perspective while tactical management is targeted on implementation based on the vision determined by the command.

The orientation of management is towards change management and anticipation of environmental changes. Alternatively, tactical management is focused towards adaptation to improve discovered by the management and it generally does not take the initiatives of organizational and environmental change management.

Leadership is concerned with the dynamics of a situation and it recognizes and realizes that how to leverage its resources to react to the dynamics of the situation. Moreover, it is concerned with harmonizing or changing the culture to meet up with the challenges of vibrant external environment. Alternatively, strategic management can be involved with the strategy and it follows the requests of the command. Strategic Management function is to make all the stakeholders flexible to social change which is recognized by the leadership.

Leadership is empowering while tactical management is being empowered.

Actions of authority require skills however the influence of actions of authority is strongly on figure of market leaders. Strategic Management is all about skills and management actions are skill focused rather than persona oriented.

It is interesting to note that leadership can be involved with positive prospects while tactical management can be involved about negative repercussions.

The basic responsibility of leaders is to construct and reshape the business while proper management can be involved about following command vision to assist in building and reshaping the business.

Leadership is all about taking chances because market leaders understand their talents and weaknesses and leaders tend to learn from their mistakes. As the tactical management is more worried about preventing risk and implementing risk response strategies.

Leadership placed goals while management target mostly on goals establish by their higher levels or control.

Leadership take initiatives beyond its responsibility, support goals, provide direction and empower others. Strategic Management is more worried about segmenting regions of responsibility and it comes after leadership vision, organizational idea and organizational culture alternatively than taking initiatives.

Impact of management and command style on proper decisions

Leadership styles and management plays an important role in the tactical decision of an organization. As discussed previously, control inspires management to meet strategic objectives and therefore impact of command on tactical decisions is more prominent that management and management styles are necessary in taking strategic decisions for an organization. Different leadership styles are reviewed below which are:

Autocratic or authoritarian style

In the autocratic or authoritarian style, decision making power is centralized to the leader and the leader holds the key decision making electric power. The most visible example of authoritarian market leaders is the dictatorship. It is important to note that Autocratic or authoritarian style do not consider or captivate the recommendation, assessment or suggestion from subordinates but instead they would like to apply their own specialist on them. It is interesting to notice that the Autocratic or authoritarian style control style is a good motivational tool for a supervisor or head as it motivates the first choice or manager to perform. Also, your choice making process in Autocratic or authoritarian style is extremely swift and simple because only one person is decides for your group. Furthermore, Autocratic or authoritarian style leaders keep the decision making vitality with them always and determine solely on the personal ideas unless or until they feel that they should reveal it with all of those other group.

Laissez-faire or free rein style

In Laissez-faire or free rein style, the first choice will not lead the group but rather it leaves the group entirely to itself. In simple words, the leader allows maximum freedom to its subordinates. For instance, the subordinates are absolve to make their own insurance policies and decision independently and widely.

Participative or democratic style

The participative or democratic leaders rely greatly on the consensus of the management and subordinates to consider strategic decisions or even to set strategic guidelines. They rely closely on the consulting of the employees and management to devise strategies for getting organizational goals. Team and Management of the organization in this form of leadership works well but this is a slow process. It is interesting to notice that leaders in cases like this are chosen by the consensus of subordinates or management unlike in authoritarian style of leadership.

Impact of command style on management and proper decisions

Different authority styles work and efficient predicated on different situations and contexts. For example, sometimes the organizations have to make immediate decisions where time is very little to converge by using an agreement. In cases like this an Autocratic or authoritarian style is more effective because a specified authority who have more experience and expertise than all of those other team could make and put into action decision quickly and quickly to react to the given situation.

On the other side, in case of a highly stimulated and aligned team with a homogenous level of expertise and experience, Laissez-faire or free rein style would be more effective and efficient. It depends on scenario and aims that which command style should be chosen.

Task 2

Review of selected theories of management and authority effect on Lincoln Electric organizational strategy

Vision, Mission and Value Statement

Leadership is the most crucial reason for the success of a business. Leadership enables the business to gain a ecological competitive advantage available on the market. It is because leadership develops working and organizational viewpoint which shapes eye-sight, mission, and organizational culture of the business. Vision, Quest and organizational culture play the most crucial to devise and effective and successful technique to gain a ecological competitive advantage in the marketplace. Therefore, management is the most important element in making vision, objective and value claims and these statements reflects the command qualities and personalities and their visions.

The vision, objective and value statements can be implied of their established website which reflects the leadership and organizational viewpoint of Lincoln Electric. Eye-sight assertion can be created as "To be the global producer and market innovator of the best quality welding, trimming and signing up for products". The Objective statement for Lincoln Electric can be mentioned as" To put up with enthusiasm for development and application market control and global producer vision by giving complete solutions that produce their customers more fruitful and successful". Finally, the worthiness statement serves as a "the client value would be provided to customers by building up and making the most of the satisfaction of employees and customer value would create shareholders' value in return with the maximum employee drive and satisfaction". (Lincoln Electric, 2010)

Operating Idea or organizational philosophy

It is interesting to note the company functioning viewpoint is highly seen as a the Christian ethics and it was leadership perspective of Adam F. Lincoln which in turn became the organizational and working school of thought of Lincoln Electric. The aforementioned implied perspective, mission and value assertions reflect the Christian ethics that are gained from the operating idea of Lincoln Electric. Highest quality products are provided to the clients by figuring out customer needs and desires with a sense of empathy. The worthiness is provided to customers in terms of product efficiency alternatively than price discount rates and customer likes long-term benefits and overall cost reduction in the proper execution of less repairing, maintenance, replacement and upgrading. The organizational philosophy of Christian ethics experienced six core prices which are: Respond to our customers needs and expectations with quality, integrity, and value, Identify people as our most valuable property, maintain and extend the Lincoln Motivation Management Philosophy, practice prudent and dependable financial management, strive continually to be environmentally liable, and support communities where we operate and industries in which we participate. The six values define carefully the operating viewpoint of Lincoln Electric regarding customers, stockholders, unionism and employees. (Buller & Schuler, 2006)

The employees are working on a piece rate basis with a performance score which motivates the employees to work hard. If a worker is not doing well then it would hit the part rate basis and the employee would miss the financial incentives. Job security is very high at Lincoln Electric as the employees are not punished but determined in case of failures. The employees are not fired due to Christian empathy working idea but employees recognize that if they would not perform well then they would miss their financial incentives which drives employees' attitudes to work efficiently under high job security for getting the maximum add-ons and bonuses. (Buller & Schuler, 2006)

Lincoln Management Bonuses and Benefit Plan

The management bonuses and bonus plan of Lincoln electric are incredibly motivational and attractive. The Lincoln benefit plan is strategically aligned with the piece rate pay plan that was reviewed in above. It's true that Lincoln electric management bonuses and bonus ideas are the portions worth more than half of the worker normal pay or wage. Management bonuses and bonuses derive from performance based mostly reward/point system. The management motivation and bonus programs are believed as a financial motivator in Lincoln electric. Management bonuses and bonuses are considered to be the talk about and acknowledgement of employees because of their contribution in the financial and competitive performance of the Lincoln Electric. Points are allotted in line with the contribution of every employee or administrator to the financial performance and management incentives and bonus deals are rewarded in line with the points have scored by the employees. The management incentives and bonus ideas are based on support theory which declares that patterns is a function of its consequences. (Robbins, 2005)

Leadership strategy - Proper issues driving a car the success of Lincoln Electric

A clear evaluation of Lincoln Electric reveals that Lincoln Electric has no tactical issues as it is exploiting its center competencies and functions to get a lasting competitive advantage available on the market. It is accomplishing differently from competitors. Corresponding to Michael Porter (1996), Strategic Placement and operational effectiveness are two completely different methods and concepts. Operational Effectiveness is necessary for a business success but not sufficient for this. An organization has to create a strong strategic setting to be globally competitive and also to gain a sustainable competitive benefit which is not imitable by competition. Strategic Placement is an totally different approach which is "executing different activities from competitors or executing similar activities in various ways". Alternatively, operational effectiveness is merely undertaking similar activities from rivals in an improved but not different way. Therefore, the competitive benefit gained from operational efficiency is easily imitable because the rivals may also take up the same or better practices to come up with the same or a better advantage. But, in case there is strategic positioning, competitors could not imitate because the organization adopting strategic setting is entirely different from rivals and a competitor has to copy the complete activity systems to imitate that competitive gain which is nearly impossible because the own proper positioning of that particular competition would be lost after achieving this. Japanese companies were well known for best-practices and Total Quality Management. Their global competitiveness was predicated on operational efficiency in the 1970s and 1980s. Inside the race of functional effectiveness, japan companies cannot develop strategic placement and fell under the snare of competitive convergence. The target of Japanese corporations was to imitate competitors and merely to perform better. Japanese relished success because the globe economies were growing. However when the market segments became saturated; japan firms were jammed in their own traps and finally rubbed out of marketplaces. (Porter, What's Strategy, 1996)

Lincoln Electric has developed a strategic setting rather than operational effectiveness. The most important reason for Lincoln Electric's survival is its strong human reference management in the most union obsessed part of US. Lincoln Electric activity systems reinforced each other to truly have a sustainable competitive edge. The concentration of Lincoln Electric was to develop a "strategic position" while the rivals were more concerned about operational effectiveness that was necessary however, not sufficient.

Task 3

Current authority requirements

It is important to notice that organizations devise productive business level and corporate and business strategies to gain a ecological competitive advantage in the marketplace in accordance with competition. The authority plays the most dominating role in devising strategies for corporation to preserve a competitive benefits. Leadership advances organizational idea and organizational viewpoint gives go up to vision and quest for the business. The strategic targets of an organization are set based on its visions and missions.

Therefore, understanding and understanding of leadership philosophy and its implications is the very best skill for successful control. The individuals employed in the Lincoln Electric will need to have understanding of organizational philosophy and its culture and personal goals of people must be aligned with the organizational philosophy for effective management. Personal skills of the individuals must be compatible with the organizational philosophy to develop authority in them.

The personal skills that happen to be required for successful leadership are:

Self awareness

Proactive

Ability to shape and reframe events

Ability to incorporate the perspectives of others

Self-Motivation (Ambler, 2006)

All the aforementioned personal skills of individuals must be appropriate for the professional skill of "knowledge of organizational viewpoint" to reach organizational proper goals.

Development of future situation for necessitating leadership

As we've already discussed that each organization makes efficient business level and commercial strategies to gain a ecological competitive advantage in the marketplace relative to competition. The control performs the most prominent role in devising approaches for corporation to sustain a competitive benefits. Leadership evolves organizational philosophy and organizational philosophy gives go up to perspective and mission for the organization. The strategic objectives of an organization are set based on its visions and missions.

Professionally, understanding of organizational school of thought, aligns the non-public goals of an individual with organizational goals and the individual realizes that, to be successful, he must reach organizational strategic goals for reaching his own private goals because a motivation or payment and determination is added with this understanding of organizational philosophy. Therefore, drive (job development, personal goals) and payment (rewards, deals) provide means for both kinds of goals or objective accomplishment.

Personally, having interpersonal skills and features, creates awareness one of the individuals that commercial culture and philosophy is very important to the success of the individuals and business. The development of self-motivation with the aforementioned concept develops a driving push that guides the given individual to meet their personal goals by shifting just how of reaching proper goals of the business.

Leadership skills for a particular situation

For example, the changing market fads stimulate the Lincoln Electric to devise more environment and user friendly tools for its customers. In this case, company must devise activity systems and strategy corresponding to its authority viewpoint and operating school of thought since it is the primary competency of the business. It must seek ways for harmonizing personal goals of people with the management goals by compensating them effectively. Authority must be developed by educating individuals organizational school of thought which originates from leadership.

Methodology

The Lincoln Electric must design a twelve months management trainee program in which individuals must be trained both professional and professionally for strategic goals achievement. There should be four modules. The first component must are the professional literature such as "competitive strategy by Michael porter", different academics articles related to strategy and management, complete explanation of organizational and command philosophy to develop personal skills for proper goals achievement. The next module must require motivational approaches and strategy for defining ways to harmonize personal with professional goals, reimbursement and benefits as incentives to incorporate personal goals with professional goals and an overview of organization. The 3rd component must include rotation of people among different departments and capacities and last module must require the individuals to manage some pilot assignments to reach organizational proper goals. It's important that organizational and authority idea must be strengthened in every single component by the instructors. The final two modules are made to increase involvement of people at the different strategic levels. Working out must conducted and supervised by the true leaders of the business.

Conclusion

In this paper, important linkages between strategic management and command of an organization were examined and examined. The first introduced the links between proper management and control. The next part applied management and authority philosophies to review the Lincoln Electric which is one of the successful organizations of the world. The past part advised some ways of develop and boost leadership across the organization. It could be concluded that leadership plays the key role in the strategic management and success of a business.

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